In the bowl of a stand mixer fitted with the paddle attachment, add the butter, sugar, water, and milk.
Sprinkle the packet of yeast over the liquid and let it sit for 5 minutes until slightly foamy.
Mix the ingredients to combine.
Add the flour and salt to the bowl.
Turn the mixer on low for 5 minutes until the dough forms a ball and comes away from the sides of the bowl.
Spray the bowl of your Instant Pot with cooking spray or olive oil.
Add the dough to the Instant Pot.
Cover the Instant Pot and set the “yogurt” setting to 90 minutes or until the dough has doubled in size.
Preheat the oven to 375 degrees.
Turn the dough out onto a lightly floured surface.
Cut the dough into 10 equal pieces. You can weigh them to make sure they are the same size, or you can eyeball them to get them as close as possible to the same size.
Form each piece of dough into a ball and place the balls on a silicone or parchment lined baking sheet.
Cut a slash in the top of the dinner rolls with a sharp knife.
Place the dinner rolls in the oven for 30 minutes or until lightly browned.
Serve warm!